TALLADEGA — The City Council voted unanimously Monday night to authorize City Manager Michael Stampfler to “hire a professional operation firm to manage the (water and sewer) system on behalf of the city in the interim.”

The vote followed a 45-minute executive session to discuss pending litigation with city attorney Michael O’Brien. As during the past council meeting, the council was presented with a lengthy written document from Stampfler, which they then took turns reading as a script into the meeting’s record.

The city has failed to meet several requirements of federal and state consent agreements stemming from the continued use of tainted well water in the late 1990’s and earlier this decade. One of the penalties still on the table is federal debarment, or lack of eligibility for any federal funding at all.

The Stampfler report, according to the portion read out loud by Councilman Lance Grissett, lays out three options, including interim external management, preparing a request for qualifications for experienced operations companies, and contract operation on an emergency basis. The council chose option three.

According to the “pros and cons” listed in the report, this option “allows for qualification based selection and the flexibility of negotiating objectives and goals, provides a timely solution to the needs of the city, allows for an immediate infusion of third party capital funds, which would prevent future rate increases, will allow the sharing of liability and contractually ensures performance and compliance (and) provides the expertise needed to address the existing issues.”

Councilman Jimmy Davis then read Stampfler’s recommendation into the record, saying he moved “the city manager be authorized to negotiate an emergency contract with a professional firm to manage the water and sewer department.”

These negotiations will involve performance guarantees that would “allow the city to address the insufficiencies in a timely fashion, while maintaining full control of the utility; allow the city to set measurable goals and timelines for the improvement of the system; guarantee that all current employees be retained for a minimum of three years (at) their current wage and benefit level ; allow for an infusion of significant private capital to improve the system infrastructure, helping to alleviate the financial deficiencies that plague the current system.”

Under this item, the report says, “The system is in need of a minimum of $15 million to $25 million in capital to establish a water distribution system and collection system that is efficient, sustainable and safe.” Some 10 essential infrastructure projects with estimated costs between $100,000 and $5 million each were then listed, although Davis did not read all of them.

“Sustained 8 percent increases (which the council has already approved) for each of the next 10 years would wield only $4,185,482 in additional funding,” he read.

The parameters will also include guaranteed compliance with the U.S. Environmental Protection Agency and Alabama Department of Environmental Management consent orders and allow “for the necessary improvements to take place without increasing water and sewer rates.”

By way of background, the report lists eight critical areas, which were read into the record by Councilmen Donnie Miller and Eddie Tucker.

“As indicated…,” Miller read, the water and sewer department is in dire need improvement on a variety of fronts, in order to meet the standards set forth by the EPA compliance agreement and the ADEM consent order, as well as being able to provide routine services expected by the utility customers and necessary for public health.”

According to Miller’s portion, these include years of mismanagement and neglect, providing sufficient funding to provide necessary infrastructure improvements, concerns relative to potable water, and safety of the facilities.

Tucker emphasized lack of successor management, including no one to step in for the operations manager while he is on medical leave, an impending vacancy in the position of construction supervisor and pending litigation stemming from system failures (separate from the EPA suit).

Tucker also pointed out, per Stampfler’s report, that inadequate water pressure could compromise the city’s ability to fight fires.

Following the vote, Mayor Brian York said he was “in favor of doing what was best for the citizens of Talladega, and I believe this is it.”

Stampfler said he would have a recommendation on a company by either the second meeting in January or the first in February.

Also Monday, the council:

• Saw York administer the oath of office to Airport Board members Ray Miller, Calvin McRae and Jeff Roberts and Library Board members Rebecca Newman and Nicola Lawler.

• Agreed to send a lease renewal agreement with ATAP to the Airport Board for a recommendation.

• Based on advice of counsel, decided not to waive any portion of fine or reimbursement owed for cutting property owned by Habitat for Humanity.

• Appointed Brian Miller the Ethics Compliance Officer for the water and sewer department during the absence of Manager James Brasher.

• Approved a contract with Munroe and Jenkins Architects for playground and other parks and recreation projects at a cost of approximately $45,000.

• Agreed to purchase a 2010 Chevrolet Impala for the police department’s street crime unit with grant funds.

• Approved and agreement with B&S Sporting Goods for Parks and Recreation sports uniforms.

• Approved the grant agreement for the senior nutrition program.

• Approved water and sewer invoices 4-1, with Tucker dissenting.

• Moved the second pay period in December to Dec. 23.

• Heard that approximately 25 to 30 water customers per month lose service because of falling behind on the payments. Half are repeat offenders.

• Agreed to include the monthly department reports in the minutes without actually reading them during the meeting.